• Loncor Gold has received an unsolicited, non-binding offer for a potential transaction involving its Adumbi gold project in DR Congo
• A special committee is reviewing the offer; details and the investor's identity remain undisclosed
• The move comes amid a strong gold market, with Adumbi holding 3.66 million ounces in resources

Loncor Gold, operator of the $392 million Adumbi gold deposit in the Democratic Republic of Congo, has announced it has received an unsolicited and non-binding offer from a third-party investor for a potential transaction. According to a statement released on Tuesday, July 15, a special committee composed of company directors has been formed to review the proposal.

No further details have been disclosed regarding the nature of the offer or the identity of the investor. It remains unclear whether the offer concerns an acquisition, a merger, or a minority stake. The offer comes against the backdrop of a bullish gold market, with prices having risen by around 30% since January. The yellow metal continues to trade above the historic $3,000-per-ounce threshold, according to the World Gold Council.

This environment is boosting investor interest in the sector, particularly in companies with advanced gold assets like Loncor. The Adumbi project already hosts a declared 3.66 million ounces of mineral resources. According to a preliminary economic assessment (PEA) published in 2021, the deposit could yield 303,000 ounces of gold annually over 10.3 years, based on an initial investment of $392 million, as previously stated.

While Loncor continues exploration work at the site to expand its current resources, the outcome of the unsolicited offer remains to be seen. The company said it would provide an update on the matter “if circumstances warrant.” Adumbi is 84.68% owned by Loncor, while the Congolese state holds a 10% stake.

Aurel Sèdjro Houenou